Brook Noel
Beware of
Impulse Purchasing
Perhaps the evidence is in your own home. Look for items that you have purchased but have rarely used. Ask yourself:
What benefit did I believe I would receive?
- more time?
- more money?
- beauty?
- happiness?
- less stress?
And, did the purchase create that benefit?
Next:
- Pay special attention to what type of items you purchase the most. This observation will help determine your highest susceptibility for impulse purchasing.
- Spend some time journaling about possible ways you could create less stress, more time, more beauty—whatever category your items fall into—without buying anything.
Silly Ways To Lose Money
November 2010
You work hard for your money and you want to manage it well. Marketers will try to lure you into buying products you don’t need. The following are strategies for watching your wallet and giving your paycheck the respect it deserves.
Two Is Not Always Better
One of the most common marketing tactics is the “two-item upsell.” You could purchase one item for $20 and get a second for only $5 more. But do you really need two? You may justify this type of purchase: “What if I love this product and want to get another one and can’t find it?” The marketers want you to think that way.
Ask What the Deal Really Is
Very often, multiple items are on sale for a low price — you may find cereal, for example, listed at five for $10. If the savings are big enough, you may be inclined to buy all five boxes. Go to the customer service counter and ask if you still receive the savings with a one-box purchase.
Organize Yourself
How many times have you bought something you already owned because you could not find the item when it was needed? Create a designated space for each of your belongings — tweezers, sunglasses. Resolve to stop your loss pattern and save more.
Do you need it?
As an example, magazines inserts indicate you spent three dollars for a magazine that could have been delivered to your house for a year at a significant discount. They also offer free tote bags, booklets, and other offers that assume you’d be smart to subscribe. Take a look at your current subscriptions: If you only read one or two issues a year, it is better to avoid the clutter and buy them at the newsstand. Plus, many magazines offer all or some content online.
Pay Now, Not Later
Furniture and computer stores are famous for these sales: “Buy now and don’t pay for X years.” When the money isn’t there, the interest charges begin, often making the item cost two to three times its original list price. You may find that saving up to buy what you want and paying cash is more rewarding.
Foresee the Value
Many ads assume you will save money by owning a certain item — espresso machines, home-gym systems, pasta makers. Some people will actually use their purchases regularly and their savings will be dramatic. Most people will purchase these items based on the perceived value and not use them. Take gym equipment: many need the routine and support system of going to a gym and are less likely to work out at home. Make sure the perceived-value item is one you will use.
Adapted from "The Change Your Life Challenge" by Brook Noel, Sourcebooks.
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